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Posts Tagged ‘underwriting spread’

Goldman Sachs and Uncle Sam’s “Games People Play”

Posted by Larry Doyle on August 17th, 2010 7:42 AM |

Why does it seem that whenever something really dicey happens on Wall Street, the crowd at Goldman Sachs is typically in the middle of it? How so? Let’s enter the world of new issue equity underwriting.

There is very little that is truly sacred on Wall Street. That said, one of the traditional “sacred untouchables” on the street of dreams has been the new issue equity underwriting spread. Maintaining this spread between a cushy 2% to 3% level is typically sacrosanct and actually more easily maintained now given the oligopoly that currently defines Wall Street. I have written extensively on how this game of oligopoly has been played on Wall Street circa 2010. (more…)






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